directors' report - in urdu 20 -...

Company Information 02

Directors' Report 03

Condensed Interim Balance Sheet 05

Condensed Interim Profit and Loss Account 06

Condensed Interim Statement of Comprehensive Income 07

Condensed Interim Cash Flow Statement 08

Condensed Interim Statement of Changes in Equity 09

Notes to the Condensed Interim Financial Information 10

Directors' Report - In Urdu 20

Contents

01Gadoon Textile Mills Limited

02 Third Quarterly Report March 2018

Company Information

Board of Directors Mr. Muhammad Yunus Tabba (Chairman)Mr. Muhammad Sohail Tabba (Chief Executive)Mr. Muhammad Ali TabbaMr. Imran YunusMr. Jawed Yunus TabbaMrs. Mariam Tabba KhanMrs. Zulekha Tabba MaskatiyaMr. Saleem Zamindar (Independent Director)

Audit Committee Mr. Saleem Zamindar (Chairman)Mr. Muhammad Ali TabbaMr. Jawed Yunus TabbaMrs. Zulekha Tabba Maskatiya

HR and Remuneration Mr. Jawed Yunus Tabba (Chairman)Committee Mrs. Mariam Tabba Khan

Mrs. Zulekha Tabba Maskatiya

Executive Director Financeand Company Secretary Mr. Abdul Sattar Abdullah

Chief Financial Officer Mr. Muhammad Imran Moten

Auditors Deloitte Yousuf AdilChartered AccountantsA Member of Deloitte Touche Tohmatsu

Chief Internal Auditor Mr. Haji Muhammad Mundia

Registered Office 200-201, Gadoon Amazai Industrial Estate,Distt. Swabi, Khyber Pakhtunkhwa.Phone: 093-8270212-3Fax: 093-8270311Email: [email protected]

Karachi Office 7-A, Muhammad Ali Housing Society,Abdul Aziz Haji Hashim Tabba Street,Karachi-75350.Phone: 021-35205479-80Fax: 021-34382436

Liaison Office Syed�s Tower, Third Floor, Opp. Custom House,Jamrud Road, Peshawar.Phone: 091-5701496Fax: 091-5702029E-mail: [email protected]

Factory Locations 200-201, Gadoon Amazai Industrial Estate,Distt. Swabi, Khyber Pakhtunkhwa.

57 K.M. on Super Highway, Karachi.

Share Registrar / Transfer Central Depository Company of Pakistan LimitedAgent CDC House, 99-B, Block B, S.M.C.H.S.,

Main Shahrah-e-Faisal, Karachi.(Toll Free): 0800 23275

Bankers

Allied Bank LimitedAskari Bank LimitedBank Al-Falah LimitedBank Al-Habib LimitedBank Islami Pakistan LimitedDubai Islamic Bank Pakistan LimitedFaysal Bank LimitedHabib Bank LimitedHabib Metropolitan Bank Limited

Meezan Bank LimitedNational Bank of PakistanMCB Bank Limited (formerly NIB Bank Limited)Soneri Bank LimitedStandard Chartered Bank Pakistan LimitedThe Bank of PunjabThe Bank of KhyberUnited Bank Limited


Directors' ReportDear Members

The Directors of your Company take pleasure in presenting before you the performancereview and the un-audited financial statements for the nine months ended March 31, 2018.

Overview

During the period under review, your Company recorded turnover of approximatelyRs. 20 billion against Rs. 17 billion for the Same Period Last Year (SPLY); an increase ofapproximately Rs. 3 billion (16.5%) for SPLY. The increase in turnover is attributable onaccount of Increase in total exports by 38% (Yarn Exports by 32% and knitting Exports by107%) and local sales by 8%. The major reasons for Increase in exports is government exportpackage with softening conditions and devaluation of Pakistani currency by 10% renderingour product competitive in global markets. Export sales of Knitted Fabrics have also shownan upward trend, increased from Rs. 382 million to Rs. 793 million, thereby an increase ofRs. 411 million, i.e. almost doubled from SPLY.

Increase in Local sales is mainly attributed to withdrawal of sales tax and increase in demandsof value added sector due to government export package which increased exports of valueadded sector and yarn, being raw material for them, also helped our Company increase theirsales locally. However, profit margins are not very attractive but still favorable for positivebottom line.

The energy cost is still higher than regional competitors in addition to increased prices ofraw material, due to demand supply gap and abrupt devaluation of Pakistan rupees, politicalinstabilities and imposition of innovative taxes and levies, which have made it difficult for theindustry to take a long term view over their operations. Despite political instabilities, abruptdevaluation of currency and fierce competition with regional competitors, consistent effortsof your management has managed to get the positive bottom lines of Rs. 687 million ascompared to of Rs. 521 million SPLY.

Economic Prospects

Overall economic position of the country has remained stable. There have been some politicalinstabilities, which was compensated by other factors, not limited to CPEC gaining globalrecognition and reduction in power crisis of the country.

Although cotton production has increased in comparison to last year but it still couldn't meetthe target set by the government, due to which industry has to shift towards import ofcotton in current financial year. This has not only affected current account of the countrybut has also made finished products costlier than our regional competitors. On overall basis,current account deficit is up by 20% in Rupee term and 17% in dollar term.

The implementation of ECC decision regarding withdrawal of Sales tax and Custom duty onimported cotton has supported in reducing cost of production which was increased by abruptchange in exchange rate, which in current financial year has been recorded at 10%.

Financial Performance

As evident from the financial results stated, the Company has managed to compete in thisperiod by posting a positive bottom line.

Profit and Loss Summary

(Rupees in �000)

March 31,2018

March 31,2017

Percentage

Favorable /(Unfavorable)

5,063,764)

12,085,895)

17,149,659)

922,710)

(189,758)

(140,611)

(262,495)

385,525)

665,580)

521,187)

18.59)

Export

Local

Sales (net)

Gross Profit

Distribution cost

Administrative expenses

Finance cost

Other income

Profit before taxation

Profit after taxation

Earnings per share (Rs.)

37.61)

7.72)

16.55)

47.38)

(52.23)

(17.97)

(50.87)

26.71)

32.64)

31.78)

)

)

)

6,967,996

13,019,507

19,987,503

1,359,866

(288,869

(165,875

(396,039

488,515

882,831

686,808

24.50

As evident from above, the Export sales have shown an upward trend from SPLY mainly onaccount of support from the Export package announced by the Government in January 2017which was further extended to financial year 2018 in August 2017 with relax conditions and


devaluation of Pak rupee by 10%. The product cost in the current period has also increased,resultantly, gross profit margins have remain almost stagnant when compared with lastperiod, i.e. Gross Profit margin for the current period clocked at 6.8% as against 5.4% SPLY.

Although, devaluation of Pakistani currency has given an opportunity to the Company tohelp regain their product footprints in the global markets, but it has also impacted the rawmaterial cost due to unavailability of quality raw material locally, the Company had to shifttowards procurement of imported raw material, resultantly, dilution of positive impact fromincreased export.

There has been a sharp increase in distribution cost mainly due to increased freight onaccount of increased export of Yarn and Knitted fabrics. The Company contained itsadministrative cost from past 2 years and increase is mainly on account of uncontrollablefeatures, such as inflation, employee costs etc. After the political instability which resultedin abrupt devaluation during the period, the Company's management, keeping in view therisk management and cost benefit analysis, has disposed-off its foreign currency exposureby converting the same to local borrowing, which resulted in an increase of 51% in its Financecost. Although, the management has still managed to maintain an efficient portfolio of fundsby reaping maximum benefits of lower benchmark rates prevalent in the country along-withminimum spreads.

The returns from the Company's strategic decision to invest in diversified avenues is supportingenterprise value of the Company which is evident from a material increase of Rs. 110 millionin other income to Rs. 323 million against Rs. 213 million SPLY. Furthermore, with the revisedexport package, rebate income to be received under the referred package has increasedother Income by Rs. 140 million as against Rs. 50 million SPLY* (*Rebate package wasannounced In January 2017).

Operational Performance

The production and sales statistics for the nine months ended March 31, 2018 and itscomparison with SPLY is presented below:

Karachi: April 27, 2018

39,642

March-2018Sales

March-2018Production

March-2017Sales

March-2017ProductionQ

ua

nti

ty in

KG

s (�

00

0)

60,21438,681 58,089

19,81916,525

Local Sales Export Sales

60,000

30,000

-

15,000

45,000

75,000

It is evident from above that there has been an increase of 3.6% in production because ofwell planned production mix, furthermore, local sales and export sales quantities have beenincreased by 2.5% and 20% respectively, which is evident from record turnover of approximatelyRs. 20 billion.

Future Outlook

We believe that the announcement of revised export package by the government, relaxingthe conditional subsidy will surely create further business opportunities for the ailing textilesector for longer period, which has the largest share of export of the country, this in resultwill be a great support to the economy as a whole. The management has already procuredmost economical raw material available to meet its production target maintaining qualityparameters, however, impact of devaluation of Pakistan Rupees has washed away its positiveimpact.

Furthermore, keeping in view the latest technologies, Company management is also planningto replace old technology machineries with new technology to become more effective andefficient, and be able to compete with its regional competitors, which is evident from materialcapex of Rs. 775 million.

Keeping in view the results achieved by investing in diversified portfolios, the board hasalready notified its approval for investment in power projects and all such investment decisionshave now been approved by the shareholders' as well. Management expect that once allsuch investments are materialize, it will help boost Company's bottom line.

Acknowledgements

The Directors record their appreciation of the performance of the Company's workers, staffand executives.

For and on behalf of the Board

MUHAMMAD SOHAIL TABBAChief Executive Officer

MUHAMMAD YUNUS TABBAChairman / Director


ASSETS

Non-current AssetsProperty, plant and equipment 5 7,661,123 7,447,694Long-term advance 6 - -Long-term loans 16,585 9,723Long-term deposits 27,704 27,704Long-term investments 7 2,550,155 2,472,715

10,255,567 9,957,836Current AssetsStores, spares and loose tools 492,585 491,790Stock-in-trade 8 7,271,288 5,700,578Trade debts 2,452,129 1,750,769Loans and advances 670,571 732,810Trade deposits and short-term prepayments 41,755 17,679Other receivables 767,428 928,097Income tax refundable 454,975 514,535Cash and bank balances 176,249 163,926

12,326,980 10,300,184

Total Assets 22,582,547 20,258,020

EQUITY AND LIABILITIES

Share Capital and Reserves

Authorized57,500,000 ordinary shares of Rs. 10/- each 575,000 575,000

Issued, subscribed and paid-up capital 280,296 280,296Capital reserves 137,541 137,541Revenue reserves 7,306,346 6,948,886

Total Equity 7,724,183 7,366,723

Non-current LiabilitiesLong-term finance 467,165 -Deferred liabilities 1,181,297 1,114,696

1,648,462 1,114,696Current LiabilitiesTrade and other payables 2,950,505 2,794,771Accrued mark-up 107,927 87,667Short-term borrowings 9 9,965,128 8,635,992Provision for taxation 186,342 258,171

13,209,902 11,776,601

Total Liabilities 14,858,364 12,891,297

Total Equity and Liabilities 22,582,547 20,258,020

CONTINGENCIES AND COMMITMENTS 10

The annexed notes from 1 to 17 form an integral part of these condensed interim financialinformation.

Condensed Interim Balance SheetAs at March 31, 2018

Note (Rupees in �000)

June 30,2017

(Audited)

March 31,2018

(Un-audited)


MUHAMMAD IMRAN MOTENChief Financial Officer



Condensed Interim Profit and Loss Account (Un-audited)

For the Nine Months Ended March 31, 2018




(Rupees in �000)

Nine months ended

March 31,2018

March 31,2017

March 31,2018

March 31,2017

Quarter ended

Note

Sales - net 19,987,503 17,149,659 7,047,435 5,469,369

Cost of sales 11 (18,627,651) (16,226,949) (6,474,687) (5,224,894)

Gross profit 1,359,852 922,710 572,748 244,475

Distribution cost (288,869) (189,758) (104,052) (63,031)

Administrative expenses (165,875) (140,611) (58,780) (44,762)

(454,744) (330,369) (162,832) (107,793)

905,108 592,341 409,916 136,682

Finance cost (396,039) (262,495) (145,683) (90,105)

Other operating expenses (114,753) (49,791) (41,441) (13,535)

394,316 280,055 222,792 33,042

Other income 165,862 172,075 61,157 69,095

Share of profit from associates

- net of tax 322,653 213,450 90,799 102,138

Profit before taxation 882,831 665,580 374,748 204,275

Taxation 12

Current (186,342) (176,612) (73,273) (54,585)

Prior (1,682) - (23,561) -

Deferred (7,999) 32,219 4,548 4,632

(196,023) (144,393) (92,286) (49,953)

Profit for the period 686,808 521,187 282,462 154,322

Earnings per share

- basic and diluted (Rupees) 24.50 18.59 10.08 5.51

The annexed notes from 1 to 17 form an integral part of these condensed interim financial

information.





Condensed Interim Statement of Comprehensive Income (Un-audited)


(Rupees in �000)

Nine months ended

March 31,2018

March 31,2017

March 31,2018

March 31,2017

Quarter ended

Profit for the period 686,808 521,187 282,462 154,322

Other comprehensive income - - - -

Total comprehensive income

for the period 686,808 521,187 282,462 154,322

The annexed notes from 1 to 17 form an integral part of these condensed interim financial

information.


Condensed Interim Cash Flow Statement (Un-audited)


A. CASH FLOWS FROM OPERATING ACTIVITIES

Cash used in operations 13 (452,495) (352,487)

Finance cost paid (375,799) (233,991)

Rebate received 63,717 -

Income tax paid (100,860) (133,995)

Gratuity paid (76,438) (99,403)

(489,360) (467,389)

Net cash used in operating activities (941,855) (819,876)

B. CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (775,498) (140,627)

Sale proceeds from disposal of property,

plant and equipment 16,369 21,537

Long-term loans paid to employees (6,862) (5,290)

Long-term deposits paid - (2,644)

Sale proceeds from disposal of short term investment - 168,598

Profit received from bank deposits 1,217 1,171

Dividend received on short-term investment - 2,415

Dividend received 245,213 101,676

Net cash (used in) / generated from investing activities (519,561) 146,836

C. CASH FLOWS FROM FINANCING ACTIVITIES

Long-term finance obtained 467,165 -

Dividend paid (322,562) (43)

Net cash generated from / (used in) financing activities 144,603 (43)

Net decrease in cash and cash equivalents (A+B+C) (1,316,813) (673,083)

Cash and cash equivalents at beginning of the period (8,472,066) (9,166,314)

Cash and cash equivalents at end of the period (9,788,879) (9,839,397)

CASH AND CASH EQUIVALENTS

Cash and bank balances 176,249 245,619

Short-term borrowings (9,965,128) (10,085,016)

(9,788,879) (9,839,397)

The annexed notes from 1 to 17 form an integral part of these condensed interim financialinfomation.

Nine months ended

March 31,2017

March 31,2018

(Rupees in �000)Note








Condensed Interim Statement of Changes in Equity (Un-audited)


Share

premium

General

reserve

Unappro-

priated

profit

Sub

total

Grand

total

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ( R u p e e s i n � 0 0 0 ) - - - - - - - - - - - - - - - - - - - - - - - - - -

- - -Capita l Reser ves-- -

Amalga-

mation

reserve

- - - - - Revenue Reser ves - - - - -

Issued,

subscribed and

paid-up share

capital

Sub

total

Amalga-

mation

reserve

Balance as at July 1, 2016 280,296 103,125 34,416 137,541 1,000,000 727,333 4,388,435 6,115,768 6,533,605

Total comprehensive income for the period

Profit for the period - - - - - - 521,187 521,187 521,187

Other comprehensive income - - - - - - - - -

Total comprehensive income for the period - - - - - - 521,187 521,187 521,187

Balance as at March 31, 2017 280,296 103,125 34,416 137,541 1,000,000 727,333 4,909,622 6,636,955 7,054,792



Other comprehensive income - - - - - - 26,132 26,132 26,132


Balance as at June 30, 2017 280,296 103,125 34,416 137,541 1,000,000 727,333 5,221,553 6,948,886 7,366,723

Transaction with owners

Final dividend @ Rs. 5/- per share for the

year ended June 30, 2017 - - - - - - (140,148) (140,148) (140,148)

Interim dividend @ Rs. 6.75/- per share - - - - - - (189,200) (189,200) (189,200)

- - - - - - (329,348) (329,348) (329,348)



Other comprehensive income - - - - - - - - -


Balance as at March 31, 2018 280,296 103,125 34,416 137,541 1,000,000 727,333 5,579,013 7,306,346 7,724,183

The annexed notes from 1 to 17 form an integral part of these condensed interim financialinformation.


1. THE COMPANY AND ITS OPERATIONS

1.1 Gadoon Textile Mills Limited (the Company) was incorporated in Pakistan on

February 23, 1988 as a public limited company under the Companies Ordinance,

1984 and is listed on Pakistan Stock Exchange. The manufacturing facilities of

the Company are located at Gadoon Amazai Industrial Estate Khyber

Pakhtunkhwa and 57 km on Super Highway (near Karachi). The principal activity

of the Company is manufacturing and sale of yarn and knitted fabrics. Y.B.

Holdings (Private) Limited is the holding company.

In pursuance of the special resolution passed at the 28th Annual General

Meeting of the Company held on October 29, 2015 the registered office of the

Company has been changed from 7A, Muhammad Ali Housing Society, Abdul

Aziz Haji Hashim Tabba Street, Karachi, Province of Sindh, Pakistan to 200-201,

Gadoon Amazai Industrial Estate, District Swabi, Province of Khyber

Pakhtunkhwa, Pakistan.

2. BASIS OF PREPARATION

2.1 This condensed interim financial information of the Company for the nine months

ended March 31, 2018 has been prepared in accordance with the requirements

of the International Accounting Standard 34 - Interim Financial Reporting and

provisions of and directives issued under the Companies Act, 2017. In case

where requirements differ, the provisions of or directives issued under the

Companies Act, 2017 have been followed. This condensed interim financial

information does not include all the information required for the full financial

statements and therefore should be read in conjunction with the annual financial

statements of the Company for the year ended June 30, 2017.

2.2 This condensed interim financial information is presented in Pak Rupees which

is also the Company's functional currency and figures presented in this condensed

interim financial information has been rounded off to the nearest thousand

rupee.

2.3 This condensed interim financial information is un-audited and all relevant

compliance with Companies Act, 2017 has been made accordingly. The

comparative condensed balance sheet presented has been extracted from

annual financial statements for the year ended June 30, 2017; the comparative

condensed profit and loss account, condensed interim statement of other

comprehensive income, condensed interim cash flow statement and condensed

interim statement of changes in equity of the Company have been extracted

from the unaudited condensed interim financial information for the nine months

period ended March 31, 2017.

Notes to the Condensed Interim Financial Information (Un-audited)



3. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies and the methods of computation adopted in the

preparation of this condensed interim financial information and the significant

judgements made by the management in applying the accounting policies and

the key sources of estimation uncertainty are the same as those applied in the

preparation of the financial statements as at and for the year ended June 30,

2017. Certain new IFRSs and amendments to existing IFRSs are effective for

periods beginning on or after July 1, 2017, which do not have any impact on

this condensed interim financial information.

In addition to the foregoing, the Companies Act, 2017 has added certain

disclosure requirements which will be applicable on the Company's annual

financial statements.

4. FINANCIAL RISK MANAGEMENT

The Company's financial risk objectives and policies are consistent with those

disclosed in the annual audited financial statements as at and for the year

ended June 30, 2017.

5. PROPERTY, PLANT AND EQUIPMENT

Operating fixed assets 5.1 7,095,186 6,855,143

Capital work-in-progress 5.2 565,937 592,551

7,661,123 7,447,694

5.1 Details of additions and disposals to operating fixed assets are as under:

(Rupees in �000)

Additions/ transfers

Disposals atbook value

Additions/ transfers

Disposals atbook value

Nine months endedMarch 31, 2017


Buildings 14,042 - 7,485 -

Plant and machinery 710,049 15,975 99,285 14,654

Power plant - - - 1,794

Electric installations 4,960 - 480 -

Computer equipment 2,688 101 945 23

Office equipment and

installations 705 - 1,398 180

Vehicles 69,668 5,874 23,035 3,199

802,112 21,950 132,628 19,850

Note

March 31,2018

(Un-audited)

June 30,2017

(Audited)

(Rupees in �000)


6. LONG-TERM ADVANCE

- Considered doubtful

Investment in a joint venture - Advance 6.1 66,667 66,667

Less: Provision against advance (66,667) (66,667)

- -

6.1 This represents first and second tranche of advance for a Joint Venture project

amounting to Rs. 4,250 million. The principal activity of the joint venture project

was acquisition and development of a real estate project in Karachi through a

Joint Venture Company. The Company's share in this Joint Venture project is

ten percent. Currently, the future of this project is not certain and the recovery

of this amount is considered doubtful.

7. LONG-TERM INVESTMENTS

Investments in associated undertakings

ICI Pakistan Limited 1,641,372 1,571,147

Lucky Holdings Limited 183,113 164,843

Yunus Energy Limited 725,670 736,725

2,550,155 2,472,715

5.2 Details of additions and transfers from capital work-in-progress are as under:

Gadoon Amazai


Civil works 5,253 5,253 - -

Electric installations 1,134 1,134 - -

Advance to supplier 57,715 62,324 22,937 20,277

Mark up capitalized 7,461 1,267 3,418 -

Karachi Project


Civil works 64,670 8,789 3,401 1,136

Electric installations 3,826 3,826 480 480

Advance to supplier 10,711 7,344 8,763 9,107

Mark up capitalized 2,407 3,635 - -

772,105 798,719 138,284 130,285



- - - - - - - - - - - - - - - - - - - - - - - - - - - - - (Rupees in �000) - - - - - - - - - - - - - - - - - - - - - - - - - - -

Additions Transfers Additions Transfers

March 31,2018

(Un-audited)

June 30,2017

(Audited)(Rupees in �000)Note

March 31,2018

(Un-audited)

June 30,2017

(Audited)

(Rupees in �000)


8. STOCK-IN-TRADE

Raw material in

- hand 4,835,228 3,436,226

- transit 1,292,542 721,359

6,127,770 4,157,585

Work-in-process 300,504 262,525

Finished goods

- Yarn 751,922 1,150,054

- Knitted fabric 59,147 24,783

- Waste at net realisable value 31,945 105,631

843,014 1,280,468

7,271,288 5,700,578

9. SHORT-TERM BORROWINGS - SECURED

Banking companies - secured

Running finance 9.1 5,052,579 677,014

Short term finance 4,100,000 1,500,000

Foreign currency loan against:

- Import finance 458,225 6,002,310

- Export finance 354,324 456,668

812,549 6,458,978

9,965,128 8,635,992

9.1 Facilities for running finance, import finance, export refinance and short term

finance are available from various banks upto Rs. 28.28 billion (June 30, 2017:

Rs. 24.78 billion). The terms and conditions of the short-term borrowings

including markup rates and securities have not materially changed from

June 30, 2017.

10. CONTINGENCIES AND COMMITMENTS

10.1 Contingencies

10.1.1 As at period end, bank guarantees given in favor of the Company by banks in

normal course of business amounting to Rs. 961.04 million (June 30, 2017:

Rs. 949.04 million).

Other contingencies are same as disclosed in notes 21.1.2 to 21.1.9 to the

annual financial statements for the year ended June 30, 2017.

March 31,2018

(Un-audited)

June 30,2017

(Audited)

(Rupees in �000)Note


10.1.2 Others

Export bills discounted with recourse 1,686,603 1,540,624

Indemnity bond in favor of Collector

of Customs against imports 4,105 4,105

Post-dated cheques in favor of Collector

of Customs against imports 572,996 684,890

10.2 Commitments

Letters of credit opened by banks for:

Plant and machinery 344,284 -

Raw materials 1,655,153 477,625

Stores and spares 60,869 28,035

Foreign currency forward contracts - 9,315

Further, the Company has outstanding contractual commitment under

sponsors support agreement, for debt servicing of two loan installments upto

Rs. 338 million on behalf of Yunus Energy Limited, an associated undertaking.

March 31,2018

(Un-audited)

June 30,2017

(Audited)

(Rupees in �000)

(Rupees in �000)

Nine months ended

March 31,2018

March 31,2017

March 31,2018

March 31,2017

Quarter ended

Note

11. COST OF SALES

Opening stock

- finished goods 1,280,468 641,035 977,987 806,803

Cost of goods

manufactured 11.1 18,190,197 16,790,710 6,339,714 5,622,887

19,470,665 17,431,745 7,317,701 6,429,690

Closing stock

- finished goods (843,014) (1,204,796) (843,014) (1,204,796)

18,627,651 16,226,949 6,474,687 5,224,894


12. TAXATION

There have been no change in the tax contingencies as disclosed in note number

21.1.5, 21.1.6, 21.1.8 and 21.1.9 to the annual audited financial statements for

the year ended June 30, 2017.

(Rupees in �000)

Nine months ended

March 31,2018

March 31,2017

March 31,2018

March 31,2017

Quarter ended

11.1 Cost of goods manufactured

Opening stock

- work in process 262,525 250,971 283,117 212,182

Raw and packing material

consumed 13,057,494 11,653,849 4,659,921 3,943,596

Other manufacturing

expenses 5,170,682 5,108,566 1,697,180 1,689,785

18,228,176 16,762,415 6,357,101 5,633,381

18,490,701 17,013,386 6,640,218 5,845,563

Closing stock

- work in process (300,504) (222,676) (300,504) (222,676)

18,190,197 16,790,710 6,339,714 5,622,887

13. CASH USED IN OPERATIONS

Profit before taxation 882,831 665,580

Adjustments for:

Depreciation 540,119 556,343

Loss / (gain) on disposal of property, plant

and equipment 5,581 (1,687)

Finance cost 396,039 262,495

Share of profit from associates - net of tax (322,653) (213,450)

Realised gain on short-term investment - (94,289)

Unrealised gain on short-term investments - (3,733)

Rebate on export sales (139,672) -

Profit on deposits (1,234) (1,158)

Dividend income - (2,415)

Provision for gratuity 135,040 119,912

Working capital changes 13.1 (1,948,546) (1,640,085)

(1,335,325) (1,018,067)

Cash used in operations (452,495) (352,487)

Nine months ended

March 31,2017

Note

March 31,2018

(Rupees in �000)


Nine months ended

March 31,2017

March 31,2018

(Rupees in �000)

14. TRANSACTIONS WITH RELATED PARTIES

Related parties comprise of associated companies, other associated undertakings,

directors and key management personnel. Transactions between the Company

and the related parties are:

13.1 Working capital changes

(Increase) / decrease in current assetsStores, spares and loose tools (795) (42,173)

Stock-in-trade (1,570,710) (1,756,482)

Trade debts (701,360) 43,007

Loans and advances (37,194) (12,593)

Trade deposits and short-term prepayments (24,076) (479)

Other receivables 236,641 (227,437)

(2,097,494) (1,996,157)

Increase in current liabilities

Trade and other payables 148,948 356,072

Working capital changes (1,948,546) (1,640,085)

Name of Related Parties Nature of Transaction

a. Associated companies(Common Directorship)

Lucky Cement Limited Purchase of cement 15,545 1,483Re-imbursement of expenses 677 502

Yunus Textile Mills Limited Sale of yarn 269,174 295,577Sale of waste 133 -

Lucky Knits (Private) Limited Sale of yarn 675,627 525,907Purchase of goods & services 25,764 26,891Purchase of vehicle - 410

Lucky Textile Mills Limited Sale of yarn 1,706,711 1,672,340Sale of fabric 319,623 180,067Doubling charges - 2,967Processing charges 2,284 -

Lucky Energy (Private) Limited Purchase of electricity 819,654 739,228

Lucky Landmark (Private) Limited Sale of vehicle 1,491 -

Yunus Energy Limited Re-imbursement of expenses 4,733 3,315Share of profit on investment 126,502 37,625Dividend received 137,557 -

ICI Pakistan Limited Purchase of fiber 1,327,116 1,033,355Sale of fiber - 22,379Share of profit on investment 177,881 153,834Dividend received 107,656 101,676

Lucky Holdings Limited Share of profit on investment 18,270 21,991

Lucky One (Private) Limited Sale of vehicle - 1,800

b. Benefits to key management personnel 60,743 49,732

March 31,

2018

March 31,

2017

Nine months ended

----- (Rupees in �000) -----





15. FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES

Fair value is the price that would be received to sell an asset or paid to transfer a liability

in an orderly transaction between market participants at the measurement date.

The carrying values of all financial assets and liabilities reflected in the financial

statements approximate their fair values.

Fair value hierarchy

The following table provides an analysis of financial instruments that are measured

subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the

degree to which the fair value is observable.

� Level 1 fair value measurements are those derived from quoted prices (unadjusted)

in active markets for identical assets or liabilities.

� Level 2 fair value measurements are those derived from inputs other than quoted

prices included within Level 1 that are observable for the asset or liability, either directly

(i.e. as prices) or indirectly (i.e. derived from prices).

� Level 3 fair value measurements are those derived from valuation techniques that

include inputs for the asset or liability that are not based on observable market data

(unobservable inputs).

As at March 31, 2018, the company has no financial instruments that falls into any of

the above category.

16. CORRESPONDING FIGURES

Comparative information has been re-classified, re-arranged or additionally incorporated

in these financial information, wherever necessary, to facilitate comparison and to

conform with changes in presentation in the current period.

17. DATE OF AUTHORIZATION FOR ISSUE

This condensed interim financial information have been approved and authorized for

issue on April 27, 2018 by the Board of Directors of the Company.


39,642

March-2018Sales

March-2018Production

March-2017Sales

March-2017ProductionQ

ua

nti

ty in

KG

s (�

00

0)

60,21438,681 58,089

19,81916,525

Local Sales Export Sales

60,000

30,000

-

15,000

45,000

75,000


5,063,764)

12,085,895)

17,149,659)

922,710)

(189,758)

(140,611)

(262,495)

385,525)

665,580)

521,187)

18.59)

37.61)

7.72)

16.55)

47.38)

(52.23)

(17.97)

(50.87)

26.71)

32.64)

31.78)

)

6,967,996

13,019,507

19,987,503

1,359,866

(288,869

(165,875

(396,039

488,515

882,831

686,808

24.50

)

)

directors' report - in urdu 20 -...

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